In earlier decades, mismanaged or fraudulent accounts, particularly those involving bad checks, led to significant financial losses for banks. A customer might open an account at one bank, write bad checks, and then attempt to open another account at a different institution before the fraud was detected. This gave rise to Early Warning Services (EWS).
What is Early Warning Services?
Early Warning Services (EWS) is a consumer reporting agency that plays a crucial role in helping financial institutions prevent fraud and manage risk by collecting and sharing data related to bank accounts, payment history, and fraudulent activity. EWS is similar to ChexSystems, both agencies compile and share information about negative banking activity, such as unpaid overdrafts, account closures for cause, bounced checks, and suspected fraud.
Type of Information EWS Reports to Banks
EWS acts as a central hub of information that banks and credit unions can tap into to make informed decisions about:
- Account Opening: Assessing the risk of new account applicants based on their banking history.
- Payment Verification: Verifying the legitimacy of deposits and payments to reduce losses from bad checks or fraudulent transfers.
- Identity Verification: Helping to confirm customer identities to prevent identity theft.
- Real-time Fraud Detection: Analyzing transaction patterns to flag and prevent suspicious activity.
What Does Early Warning Services Do?
Fraud Prevention and Risk Management: EWS collects, analyzes, and shares data on suspicious or fraudulent banking activities such as closed accounts for cause, unpaid overdrafts, returned checks, or suspected fraud. This helps member banks detect risky consumers when they apply for new checking or savings accounts, effectively acting as an early warning signal for bank account fraud or abuse.
Consumer Reporting Agency: Similar to ChexSystems but with a broader fintech role, EWS compiles consumer banking histories into reports used by banks and credit unions to assess risk before approving accounts. Consumers can request a free copy of their report once per year and have the right to dispute inaccuracies
Payment Solutions Provider: EWS owns and operates Zelle, a widely used peer-to-peer digital payment network integrated with more than 2,000 banks and credit unions nationwide. Zelle enables fast, real-time money transfers directly between bank accounts with little or no fees, responding to the demand for seamless digital payments
Who owns Early Warning Services
Early Warning Services is a privately held company co-owned by seven of the largest banks in the United States. These owner banks are:
- Bank of America
- Capital One
- JPMorgan Chase
- PNC Bank
- Truist
- U.S. Bank
- Wells Fargo
Why Banks United To Create EWS
The story of Early Warning Services is rooted in the practical realities of banking in the late 20th century. As financial services expanded and became more complex, particularly with the advent of electronic payments and the increasing volume of transactions, individual banks found themselves grappling with similar, persistent challenges:
- Rampant Check Fraud and Deposit Losses: In earlier decades, mismanaged or fraudulent accounts, particularly those involving bad checks, led to significant financial losses for banks. A customer might open an account at one bank, write bad checks, and then attempt to open another account at a different institution before the fraud was detected.
- Lack of Shared Intelligence: Each bank operated in a silo, possessing its own data on account holders and their transaction histories. There was no centralized mechanism to identify problematic customers or suspicious patterns across multiple institutions. This allowed fraudsters to exploit the fragmentation of the banking system.
- Protecting the Broader Financial System: Beyond individual bank losses, widespread fraud could erode public confidence in the banking system as a whole. The banks recognized their collective responsibility to maintain the safety and soundness of the U.S. financial landscape.
- The Need for Proactive Risk Management: Traditional fraud detection often involved reacting to incidents after they had occurred. Banks recognized the critical need for “early warning” signals – information that could flag potential risks before significant losses were incurred. This proactive approach was vital for both financial stability and customer trust
- Increasing Sophistication of Fraudsters: As technology advanced, so did the methods of criminals. Banks understood that a coordinated, data-driven approach was necessary to keep pace with evolving fraud techniques and protect the integrity of the payment system.
How to get your EWS Report?
You have the right to one free report per year, or whenever you've experienced an adverse action (like being denied a bank account) based on EWS information.
1. Online
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Visit the EWS consumer information page:
ConsumerServices.EarlyWarning.com
Follow the instructions to request your file disclosure.
2. By Phone
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Call Early Warning Services at 1-800-325-7775 or 1-800-745-1560 to request your report by phone.
3. By Mail
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You can mail a written request to:
Early Warning Attn: Consumer Services Department
5801 N. Pima Rd
Scottsdale, AZ 85250
4. What You'll Need
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Your full name
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Current and past addresses
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Social Security Number
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Date of birth
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Government-issued photo ID (for online or mail requests)
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Additional verification details as requested
EWS must send you your report within 15 days after receiving your request. Requesting your own report will not affect your credit or banking records.
5. If You Find Errors
If you spot inaccurate information, you have the right to dispute it with EWS, who is required by law to investigate and respond promptly.
